And there does not appear to be much relief on the immediate horizon. The only industrial property to finish construction during the first quarter was a warehouse spanning 30,000 square feet at 2702 W. 15th St. on Coney Island, and work did not break ground on any properties. However, there are 13 projects totaling more than 7.2 million square feet under construction, and firms have planned or proposed 19 additional industrial buildings spanning 3.8 million square feet.
Net absorption last quarter was slightly more than 615,000 square feet, meaning companies are still leasing up more industrial space than the amount coming onto the market, the report says.
The average asking rent largely stayed flat quarter over quarter, at $22.51 per square foot, and there were 48 deals overall during the first quarter of the year, the report says. Activity was split between 20 leases in Brooklyn spanning more than 325,000 square feet, 22 leases in Queens spanning more than 220,000 square feet and six leases in the Bronx spanning 73,000 square feet.
The largest deals were from retailers and manufacturers; leasing from e-commerce firms was slow due to the lack of available Class A space, the report says. The biggest lease of the quarter took place at the Brooklyn Army Terminal, where the New York Embroidery Studio, a garment manufacturer, took about 79,300 square feet to manufacture eco-conscious personal protective equipment. The second-biggest lease was the wellness firm Care/of taking about 79,100 square feet at 850 Third Ave. in Sunset Park, followed by Blossom Kitchen & Bath Supply taking 70,000 square feet at 52-15 Flushing Ave. in Maspeth.
There were also 13 investment sales across 1.4 million square feet for more than $430 million in the industrial market during the first quarter of the year. These were split between seven in Brooklyn, five in Queens and one in the Bronx. The average asking sales price dropped by 4% quarter over quarter, to $312 per square foot.